WTO accession
31 May 1995
Population
905,564
WB Ease of Doing Business rank
157
Share of international non-oil trade (%)
0.634
Value of non-oil goods traded (in US$ million)
77
Logistics performance Index (LPI)
2.39
2011 data - Sources: UNCTAD, World Bank, WTO, UN Comtrade

Under the Integrated Framework (IF), Djibouti undertook a Diagnostic Trade Integration Study (DTIS) which was validated in May 2004. The DTIS recommendations were incorporated into the first Poverty Reduction Strategy Paper (PRSP) for 2004. Subsequently, Djibouti benefited from two Window II projects which were implemented by ITC. These included a capacity‐building project for the Ministry of Trade and Industry and the National Investment Promotion Agency, to enhance technical expertise, institutional capacity and help Djibouti to integrate into the multilateral trading system. The second project on tourism was to help promote Djibouti, and enhance human resource skills through staff training at the Ministry of Tourism and for the tourist guides.

 

The DTIS has also been incorporated into the National Initiative for Social Development 2008‐2012 (NISD).

Description of the projects (objectives and interventions)

Under the EIF, Djibouti is implementing its Tier 1 "Support to National Implementation Arrangements (NIAs)" project since July 2011, supporting a coordinated approach to trade integration, with the assistance of an International Trade Advisor.

Djibouti's DTIS Update (DTISU) was approved in October 2013 with the support from UNCTAD as the Main implementing Entity (MIE). The DTISU will take into account the various changes in the economic, institutional and socio-political environment since the last study in 2004.

Main progresses to date

Coordinating bodies for trade-related resources have been established.

The Ministry of Trade is implementing the national strategy and a number of action priorities have been done including the reform of the "Code de Commerce". Meetings with donors and partner agencies (UNDP, IMF, AFD, EU) have been convened to raise awareness on the need to support trade in Djibouti and to coordinate actions. Furthermore, two information and awareness-raising workshops targeting senior executive directors and members of the National Steering Committee were organized.

In 2012, the EIF National Implementation Unit (NIU) negotiated through their Minister of Trade and Industry, a public budget line in the Finance Act 2013-2014 to fund the implementation of the National Trade Strategy.

On 23 March 2014, the High National Council of Public-Private Dialogue was launched with the aim to improve the business environment in Djibouti. The High-level event bringing together Members of Government, the National Chamber of Commerce, private sector operators and policy makers in the public sector was organized by the Ministry of Economy and Finance and supported by the EIF programme in Djibouti. As part of the EIF Tier 1 project objectives in Djibouti, the High National Council of Public-Private Dialogue will support the programme’s efforts in using trade as a tool for national economic growth and development. The platform will also support the coordinated assistance to priorities identified in the DTISU.

Outlook

The DTISU underway with the support of UNCTAD will assess the implementation of the National Trade Strategy.

After finalization of the DTISU, the EIF NIU will work to develop a Medium Term Programme.

 A Tier 2 project proposal on fisheries is under preparation.

Outcome 1: Sufficient Institutional and management capacity built in EIF countries to formulate and implement Trade related strategies & implementation plans
Outcome IndicatorBaseline2013201420152016
O1.1 Tier 1 ' Support to NIAs' project completed or under implementationNoYes
O1.2 EIF Country with complete, up-to-date validated DTIS Action MatricesNoNo
O1.3 Level of capacity of NIU to perform fiduciary programme management for Tier 1 projectN/A4
O1.4 Country with up-to date trade strategiesNoYes
O1.5 Country with quality trade strategyN/A3
O1.6 Country with quality trade strategy implementedN/A3
Outcome 2: EIF countries mainstream trade into their national development strategies and plans
Outcome IndicatorBaseline2013201420152016
O2.1 Trade in PRSP and/or National development strategies33
O2.2 Existence of productive sector strategies integrating the trade dimensionYesYes
O2.3 Functioning public/private consultation mechanismN/A2
Outcome 3: Coordinated delivery of trade related resources (funding, TA etc.) by donors & implementing agencies to implement country priorities following adoption of DTIS Action Matrix
Outcome IndicatorBaseline2013201420152016
O3.1 Availability of an annual rolling implementation overview integrating all trade-related government & donor-supported activities (including gender & environment)YesYes
O3.2 Frequency of government and donor consultations on trade-related mattersN/A2
O3.3 UN CEB Cluster activities based on DTIS Matrix priorities in EIF CountriesNoNo
O3.4 Country with joint donor initiatives in the trade area (such as need assessment; strategy formulations; programming; pooled funding; M&E; etc.)NoNo
Outcome 4: EIF Countries secure resources in support of initiatives that address DTIS Action Matrix priorities
Outcome IndicatorBaseline2013201420152016
O4.1 Country with implementation plan integrating DTIS/Action Matrix priorities and indicating financing needs to be met through ODAN/A3
O4.2 Country where a Government budget exists for implementation of its trade strategyNoNo
O4.4 Number of projects funded by donors related to the DTIS Action Matrix05
O4.4.1 Amount of projects funded by donors related to the DTIS Action Matrix (Million USD)071.4

A Decree (N2012-0138/PR/MEFIP) was passed that established the High National Council of Public-Private Dialogue, which was launched on 23 March 2014, with the aim to improve the business environment in Djibouti. The High-level event which brought together Members of Government, the National Chamber of Commerce, private sector operators and policy makers in the public sector was organized by the Ministry of Economy and Finance and supported by the EIF programme in Djibouti. As part of the EIF Tier 1 project objectives in Djibouti, the High National Council of Public-Private Dialogue will support the programme’s efforts in using trade as a tool for national economic growth and development. The platform will also support the coordinated assistance to priorities identified in the DTISU.

DTIS Update

Approved Budget
100,000
Board Approval Date
01/06/2011
Disbursement
0
Expenditure Reported
0
Phase
Implementation

NIA Support through ITA

Starting date / End date
02/12/2011
Approved Budget
668,800
Board Approval Date
01/06/2011
Disbursement
534,400
Expenditure Reported
534,400
MOU Approval Date
02/12/2011
MOU Expiry Date
25/08/2017
Phase
Implementation

DTIS Update

Starting date / End date
10/10/2013
Approved Budget
200,000
Board Approval Date
01/06/2011
Disbursement
200,000
Expenditure Reported
188,524
MOU Approval Date
08/10/2013
MOU Expiry Date
30/12/2016
Phase
Implementation

NIA Support (T1 Phase 1 and 2)

Starting date / End date
04/10/2011
Approved Budget
1,384,590
Board Approval Date
01/06/2011
Disbursement
1,249,764
Expenditure Reported
1,112,917
MOU Approval Date
30/09/2011
MOU Expiry Date
31/08/2017
Phase
Implementation
Posted: 06/05/2014

Djibouti: Partnering up public and private sectors on trade priorities means improving the doing business environment

The President of Djibouti, H.E. Mr Ismail Omar Guelleh officially launched the High National Council of Public-Private Dialogue on 23 March 2014. The event was organized by the Ministry of Economy and Finance and supported by the EIF programme in Djibouti. The High-level event brought together Members of Government, the National Chamber of Commerce, private sector operators and policy makers in the public sector.

The High National Council of Public-Private Dialogue was launched with the aim to improve the business environment in Djibouti. As part of the EIF Tier 1 project objectives in Djibouti, the Council will support the programme’s efforts in using trade as a tool for economic growth and development. The platform will also support the coordinated assistance to priorities identified in the Diagnostic Trade Integration Study (DTIS), currently being updated with UNCTAD.

The President of Djibouti noted that having in place a strong institutional mechanism for dialogue between the public and private sector would have a significant impact in reforming the business environment. “The creation of HCNDPP is an invitation to the business community of our country. It is based on participation and joint approach in the selection of its members and the definition of its missions,” he stated. “As part of the policy framework for improving the business climate and investment environment in Djibouti, the establishment of the High Council reflects the Government's commitment to institutionalize the public-private dialogue.”

The institutional High National Council of Public-Private Dialogue will be composed of three joint bodies. These include the Strategic Steering Committee, the Technical Committee and the Permanent Secretariat which consists of all ministries as well as representatives of various private sector associations.

The President of the National Chamber of Commerce, Mr Youssouf Moussa Dawaleh emphasized that such dialogue should contribute to improving the prominence and visibility of the business environment, supporting private sector investment reforms and leading to economic development. To this end, he urged his institution to ensure that private sector is adequately represented to guarantee that the platform is a success, calling also on the good will of the private sector to be actively engaged to drive forward the process and reform of the business environment.

"For several years, the Government has initiated major reforms and policies to transform Djibouti into a commercial platform and services for the Greater Horn of Africa. This has resulted, among other things, in the development and rehabilitation of transport infrastructure to support the ports of Djibouti, considered the engine of economic growth and employment through the creation of commercial and industrial zone and by improving the business environment." Mr Dawaleh stated.

The Council brings together the different actors in the public and private sectors to engage and build mutual trust between the two sectors. The Minister of Economy and Finance, H.E. Mr Ilyas Moussa Dawaleh further explained that the platform was to help create a culture of dialogue that can drive economic and social investments to a shared and inclusive growth. He added that an inclusive public-private dialogue required a consultation phase to reach a consensus around issues that may arise in the agenda of objectives, and translating these into policies, strategies and implementation plans. This would strengthen the gains of good governance and the priorities to reform the business environment.

 "The success of this new structure will be largely determined by how this dialogue will be organized within the mechanisms that will be put in place so that all stakeholders can make their voices heard," H.E. Mr Dawaleh noted. "It's becoming aware of the main problems that require different private sector actors, and giving the opportunity to all to contribute in developing the strategic development decisions, we will achieve together, an economic growth that will benefit all the people of Djibouti," he added.

In Djibouti, the EIF Tier 1 project was approved in June 2011, which has since supported a coordinated approach to trade by the public and private sectors as well as by development partners.

Focal Point

M. Hiba Ahmed HIBA
Directeure du PME
Ministère de l'Economie et des Finances
Cité Ministérielle, BP: 24
Djibouti, Djibouti
Tel: TBE

NIU Coordinator

Mr. Mohamed Omar DABAR
Cadre Intégré Renforcé, CIR Coordinateur
Ministère de l'Economie et des Finances
Plateau du Serpent, BP 24d
Djibouti, Djibouti
Tel: +253 327 160

Donor Facilitator

Mr. Harbi OMAR CHIRDON
UNDP
-
-, Djibouti
Tel: -

WB Contact

Mme. Miria PIGATO
The World Bank
, Djibouti
Tel: -
Djibouti Etude Diagnostique sur l'Intégration du Commerce Nov 2015
Djibouti Annual Progress Report 2013
Poverty Reduction Strategy Paper (PRSP) 2009
Djibouti Diagnostic Trade Integration Study (DTIS)/ EDIC 2004
Djibouti Matrice d'Action / Action Matrix 2004
Approved Window II Project: Support for tourism sector development
The EIF shall leave no LDC behind, says the EIF Executive Director at the LDC Group Retreat
EIF Executive Director Statement at the validation of Djibouti's Diagnostic Trade Integration Study Update
Djibouti: Partnering up public and private sectors on trade priorities means improving the doing business environment
Réforme de l’environnement d’affaires à Djibouti : Vers une institutionnalisation du dialogue public-privé
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